More than 80 investors and financial institutions have called on the EU to preserve the core of the EU Sustainable Finance Framework. Key European investors supporting the statement include Allianz SE, First Sentier Investors, La Banque Postale AM, Nordea, PKA and Storebrand AM. The signatories stated that regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU.

They have recommended that the European Sustainability Reporting Standards – which are in the process of being revised – maintain a double materiality approach and be interoperable with international standards and frameworks, including the International Sustainability Standards Board, Global Reporting Initiative and Taskforce on Nature-related Financial Disclosures. They have also called for the scope of the Corporate Sustainability Reporting Directive (CSRD) to be changed to cover companies with more than 500 employees, in line with the Non-financial Reporting Directive. A phase-in period of two to four years could eventually be applied, they suggested, starting with companies with more than 1,000 employees.

On the Corporate Sustainability Due Diligence Directive, the EU should maintain risk-based corporate due diligence and keep the requirement to adopt climate transition plans that include science-based targets, with disclosures in line with CSRD, and explicitly reference an obligation to put this into effect.

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